ET reported that Infrastructure firm Nagarjuna Constructions Company is set to form a joint venture with an Indonesian coal mining company to aid supply of coal for its INR 14000 crore thermal power plant in Andhra Pradesh.
Nagarjuna Constructions is setting up its maiden thermal power plant in the Srikakulam district of Andhra Pradesh to generate 1,320MW of power. An official said that “We wish to acquire a 51% stake in the new special purpose vehicle floated by Nagarjuna Constructions and the Indonesian company located in the coal rich East Kalimatan province of the country. However, our due diligence is still on and we are yet to complete the legal formalities.”
The company expects to finalise the consideration price, duration of coal supply and other terms of the deal in a couple of months. Nagarjuna Constructions has appointed TATA Consulting Engineers as its consultants for advice on technical specifications on this project.
This deal will help Nagarjuna Constructions procure 30% of the coal required for its power plant, while state owned coalfields in Mahanadi of Orissa and Raigarh of Bihar will meet 70% of its requirements.
The project will be implemented in two phases and will start generating power from 2011.
Mr KJBV Subrahmanyam director of Nagarjuna Constructions Power Projects told ET that “While the Ministry of Coal has permitted us to buy coal from Orissa and Bihar, we are requesting the government to supply coal from the Mahanadi coal field to save on transportation costs. The Ministry of Railways has given us the in-principle nod for transporting coal and we are only awaiting environmental clearance now.”
(Sourced from Economic Times)
